In 2025, investors in crypto assets are paying increasing attention to an event that, while expected, can generate significant impacts: token unlocks. Only in the week of April 18 to 24, over 520 million dollars in value were released, with projects like TRUMP, ALT, PLUME, and Scroll as key players.

But what are these unlocks really, why do they move the market so much, and how can you anticipate to minimize risks or seize opportunities? Let's explain it clearly and directly.

What are Token Unlocks?

In many crypto projects, a significant portion of the initially launched tokens is temporarily locked. That is, not all tokens are available from day one. The reason? To prevent large amounts from being sold immediately by founders, institutional investors, or development teams, which could drive the price down by creating an oversupply.

These unlocks follow a schedule known as a vesting schedule, which can take two forms:

  • Cliff unlocks: massive unlocks on a single date.

  • Linear unlocks: progressive unlocks, week by week or month by month.

When the established date arrives, tokens are released to the market... and that's when volatility begins.

How do unlocks affect prices?

From a basic economic perspective, an increase in supply without a proportional increase in demand usually generates downward pressure on prices. In the crypto world, this is clearly reflected.

Some recent examples:

  • TRUMP: On April 21, 40 million tokens (4% of total supply) were unlocked, equivalent to over USD 300 million. The price fell 23% in the previous week due to fears of massive sell-offs but then recovered thanks to positive announcements from the political environment.

  • ALT (Altlayer): Released USD 30 million in tokens (almost 8% supply inflation). Result: a 10% drop in the days prior.

  • PLUME: Smaller project. Unlocked USD 17 million and its token fell 6% with no signs of subsequent recovery.

  • Scroll (SCR): Released tokens at USD 0.21 per unit. The price dropped 14% in the previous week, also affected by a general decline in the Layer-2 sector.

These cases show that the impact depends on the size of the unlock, the liquidity of the project, community sentiment, and the overall market context.

Why does the market react so strongly?

Four factors explain the impact:

  1. Increased circulating supply: More tokens available = more selling pressure.

  2. Investor psychology: Many sell before the unlock to anticipate potential drops.

  3. Low liquidity: In small projects, even modest unlocks can cause havoc.

  4. Market narrative: If the community is active and there is good news, the damage can be mitigated (as happened with TRUMP).

In markets like Latin America, where more people are investing in crypto to diversify against inflation or lack of access to banking systems, these events can mark the difference between a profitable month and one with significant losses.

How to track unlocks?

Being informed is key. Here are some useful tools to track unlocks:

  • Token Unlocks: The most popular. Offers dates, amounts, and percentages regarding the total supply.

  • CryptoRank: Detailed calendar + personalized alerts.

  • CoinMarketCap and CoinGecko: Tokenomics data and unlocking calendar.

  • DeFi Llama: Very useful if you follow decentralized finance (DeFi) projects.

Strategies for investors during unlocks

1. Short-term strategy (before the unlock)

  • Suggested allocation: 60% stablecoins, 20% BTC, 20% liquid tokens like ETH or SOL.

  • Avoid tokens with high unlocks (e.g., ALT) and sell ahead if you already have them.

  • Place buy orders at lower prices awaiting drops.

2. Long-term strategy (post-unlock)

  • Suggested allocation: 40% BTC, 30% tokens with strong community (e.g., TRUMP), 30% stablecoins.

  • Opportunity to buy tokens that have dropped but have potential for recovery.

  • Analyze sentiment on social media platforms like X (formerly Twitter).

3. Balanced strategy

  • Suggested allocation: 50% stablecoins, 30% BTC/ETH, 20% in projects with future unlocks but good fundamentals.

  • Follow the calendars, adjust your portfolio based on events, and have liquidity ready to move quickly.

Token Unlocks are not just risks — they are also opportunities.

Yes, token unlocks can generate fear and instability, but they also represent moments of opportunity for attentive investors. Projects with solid narratives and active communities can overcome initial drops and even gain momentum after the event.

As in any crypto investment, advance information and a clear strategy are your best allies. It's not just about avoiding losses, but knowing when to act to capture value at the right moment.

#tokenunlocks #InversiónCripto |#UnlockAlert

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Image by rojdesign, available on Freepik.